Global Capability Centres (GCCs) are prone to lease workplace area of round 60-62 mn. sq. ft. of area between 2023-25. Sectors together with expertise, BFSI and engineering & manufacturing will lead leasing exercise, whereas sectors reminiscent of life sciences, vehicles, and aviation will even increase their GCC operations in India, mentioned a brand new report.
CBRE South Asia, the true property consulting agency, lately introduced the findings of its report ‘India’s Global Capability Centres-charting a brand new expertise period’. The report elaborated on the expansion of GCCs in India, leasing preferences, and key drivers for enlargement.
Global Capability Centres are captive centres established by multinational firms to deal with a wide range of capabilities, together with analytics, expertise help, product growth and innovation.
As per the report, cementing the lengthy-time period intent of worldwide firms in India, GCCs are actually leasing bigger workplaces with the potential to scale up sooner or later. North American companies proceed to be the mainstay of GCCs in India. Availability and price of expertise, actual property, and supporting regulatory framework help GCCs enlargement in India, the report added.
Key findings of the report;
By 2025, it’s estimated that there can be ~1900 complete operational GCCs within the nation from present ~1580. During this era, GCC leasing exercise is anticipated to account for 35-40% of the general workplace leasing.
Globally, among the many high rising GCC hubs, together with Brazil, Chile, China, Czech Republic, Hungary, Philippines, and Poland, India has the very best value and expertise attractiveness rating, which makes the nation probably the most sought-after vacation spot for GCCs.
Top six Indian cities
The report additionally states that from 2023-25, the highest six cities, together with Delhi, Bengaluru, Mumbai, Chennai, Pune and Hyderabad, are prone to witness a powerful pipeline of recent developments in rising micro markets, creating new hubs for exercise. The upcoming developments can be geared in direction of high quality funding-grade workplace provide, giving GCCs ample scope to improve and scale as they increase.
During Jan-Jun ’23, GCCs continued aggressive enlargement and accounted for a 38% share in general workplace area take-up throughout 6 cities. Office leasing by GCCs in Jan-Jun ’23 stood at 9.8 mn. sq. ft.
Bengaluru
Bengaluru, Chennai, and Hyderabad – cumulatively accounted for over 77% of the full GCC leasing throughout Jan-Jun’23. Bengaluru continues to account for the most important share in leasing over the six months (Jan’ 23-Jun’ 23), whereas Chennai has witnessed about one-fourth share led by prepared institutional provide that entered the market in 2023.
Bengaluru
For Bengaluru, GCC leasing throughout Jan-Jun’23 stood at 3.8 mn. sq. ft. Between Jan- Dec’22 and Jan-Jun’23, key micro markets for GCC leasing had been Outer Ring Road and Whitefield.
In Bengaluru, GCC leasing quantum between Jan- Dec ’22 and Jan-Jun’23 stood at 13 mn sq. ft., propelled by the tech sector that accounted for 46% share. Over the previous few years, the GCC panorama within the metropolis has developed from being overtly dominated by expertise and BFSI companies, to now turning into extra diversified (in addition to area of interest and specialised) with companies from sectors reminiscent of retail, aerospace and life sciences increasing their footprint within the metropolis.
Chennai
During Jan-Jun ’23, Chennai emerged because the second most popular GCC market after Bengaluru in India with 2.4 mn. sq. ft. area take- up. Between Jan- Dec’22 and Jan-Jun’23, key micro markets for GCC leasing in Chennai had been OMR Zone I and PT Road. GCC leasing quantum within the metropolis, between Jan-Dec ’22 and Jan-Jun’23 stood at 4 mn sq. ft. with a 39% share dominated by the E&M sector.
The metropolis has witnessed a few twofold enhance in GCC leasing within the Jan-Jun’23 interval as in comparison with Jan-Jun’22.
Chennai can also be an schooling hub, with a excessive presence of schools and universities providing science, expertise, engineering, and arithmetic (STEM) programs, a key driver for attracting new GCC entrants into town. The Tamil Nadu R&D Policy 2022, whereby entities reminiscent of GCCs and R&D centres are eligible for a variety of incentives on electrical energy and stamp responsibility prices, is prone to augur nicely for international companies seeking to arrange their footprint within the metropolis.
Hyderabad
Hyderabad stays within the high three cities driving area absorption by GCCs throughout Jan-Jun’23. Leasing by GCCs throughout Jan-Jun ’23 within the metropolis stood at 1.4 mn. sq. ft. Between Jan- Dec’22 and Jan-Jun’23, key micro markets for GCC leasing had been IT Corridor II and Extended IT Corridor. GCC leasing quantum between Jan-Dec ’22 and Jan-Jun’23 is 6 mn sq. ft. with a 35% share dominated by the tech sector corporations.
The development of GCCs within the metropolis comes within the backdrop of ample expertise availability and an bettering lifestyle, comparatively decrease prices, amidst proactive authorities initiatives. The metropolis has witnessed GCC exercise from throughout sectors reminiscent of expertise, life sciences and consulting companies.
Pune
Furthermore, Pune is rising as a GCC hub, with a 57% enhance in area taken up in Jan-Jun ’23 in comparison with Jan-Jun’ 22. GCC leasing quantum between Jan-Dec ’22 and Jan-Jun’23 stood at 3 mn sq. ft. with 42% share dominated by the expertise sector.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, mentioned, “Post the pandemic, global firms were nudged to re-evaluate their business offerings to increase digitisation levels. In a bid to ensure business agility, improve efficiency and make their businesses resilient, a higher number of MNCs explored multi-functional GCCs in India. Gradually, mid, and smaller-sized firms also started venturing into the Indian shores to enhance their offerings.
“Going forward, the country’s maturing startup industry, which has a symbiotic relationship with the GCC sector, is likely to see greater collaborations, fuelling the growth of the global centres’ innovation ecosystem,” Magazine added.
Ram Chandnani, MD, advisory & transactions companies, CBRE India, mentioned, “From a commercial real estate perspective, GCCs in India form a large occupier group and are often the first to adapt and innovate, setting a precedence for other occupier groups. Most GCCs in India continue to adopt a hybrid workstyle, they will likely continue to take up large office space to enhance collaboration and innovation – key performance enablers for most GCCs.”
“We believe that the incremental growth over the next two-three years will continue to be across the top metro cities. From a workplace perspective, the health and well-being of employees will continue to be of paramount significance for GCCs, with offices built for a multi-generational workforce,” Chandnani added.
